Revenues rise to almost £50m at 'smart buildings' group
RedstoneConnect, the AIM-listed provider of technology for 'smart buildings' and commercial spaces, has today unveiled plans to sell two of its divisions and reported an increase in annual revenue and profit.
The London-based firm posted turnover of £47.6m for the financial year to 31 January 2018, according to newly filed results on the London Stock Exchange, an increase of 15 per cent from a year earlier.
Adjusted profit before tax for the 12-month period also grew, rising from £1.3m to £2.4m.
"I'm pleased to report another year of continued operational and strategic progress across all our business units,” said chief executive Mark Braund.
RedstoneConnect has today also announced plans to sell its Systems Integration and Managed Services divisions for a total sum of £23m.
The disposal will allow the group to focus on developing and growing its software proposition in the smart building and co-working space markets both in the UK and internationally.
"Employee mobility and agile working is driving demand as commercial real estate becomes more of a user experience business," Braund added.
"We firmly believe that the significant global demand for workspace management solutions coupled with the market leading suite of services already being deployed within our software division, creates an ideal base from which to accelerate our growth."
In a statement, chairman Frank Beechinor said the disposal, which is subject to shareholder approval at a meeting on 15 June, will substantially change the shape of the group and bring its restructuring to an end.
"After what has been a very traumatic number of years where we have taken the business from crisis to stabilisation we have now reached another important junction in the RedstoneConnect journey," he said.
"From here we see a very exciting future where we build a business which is focused on high margin annuity revenues with significant international growth potential.”